MarketingProfs' Members Register for B2B Forum 2010 for just $695! (good until 11/30) »

Ask your question ... sign up today! It's FREE!
Student Questions     
 
This question has been closed, and points have been awarded.
High Vs. Low Barrier To Entry In The Pc Business
Posted By: r_leonhart81* on 7/6/2004 11:08 AM (CST) 50 Points
Does easy access to a distribution channel or small minimum efficient scale indicate high or low barrier to entry in the PC business? Why?

This question is based on recent investigate on apple's website's

My question is very urgent and it seems to be very important. Please try to guide me how to solve it. Thank you ....

Posted by: r_leonhart81* Author Response
7/6/2004 11:23 AM (CST)
Investigate recent development at Apple's Website answer the followeing question.

1.Does easy access to distribution channels or small minimum efficient scale indicate high or low barriers to entry in the PC business.WHY?

2.Do suppliers appropriate little oe most the value in the PC value chain? why?

3.What factors determine the intensity of rivalry in an industry? What is intensity of rivalry in the Pc industry?
 
Posted by: aosterday* Accepted Answer
7/6/2004 11:47 AM (CST)
Easy access to a distribution channel is a factor that would tip the scales towards a low barrier to entry. Easier access to distribution, easier entry.

However, ther are many more influencial variables when considering barrior to entry in a marketplace, especially the PC marketplace. You may be able to distribute your PCs, but who will buy them? IBM and Dell are big brands to compete against in a world of extremely fast moving technology, security issues, quality perceptions, etc.

Distribution does play a role. Gateway Computers had quality products for prices that almost anybody in America could afford. But they were locked out of PC Stores, and had to open their own stores and utilize e-commerce. By not being present in those channels, and having their product next to the likes of IBM and APple and Dell, they eventually lost out.
 
Posted by: JBtron Accepted Answer
7/6/2004 12:05 PM (CST)
leonhart,

Sounds like you're in the middle of an exam, and these are the questions you need help with.

1. Low. Distribution access when easy and "minimum efficient scale" are typically low barrier indicators.

2. [I'm sure you mean ATTRIBUTE instead of APPROPRIATE] but if not, then I would say that the PC Value Chain has changed so much in the last five years that it can't be a source of high value: the shifting dynamics make it a great roadmap for a direction, but it can't be implemented the way they were ten years ago.

3. Intense rivalry ususally happens when one or more products have the same or similar value propositions to consumers, and customer education on product differentiation is not strong enough for either product to be seen as "dominant." The companies begin to try and outdo each other, until someone gets the upperhand. In the PC industry, it's Hewlett-Packard v. Dell v. Sony v. IBM and OTHERS!

Hope this helps!

Best,

::JBtron

Good luck on your exam!
 
Posted by: Jett* Member Response
7/6/2004 12:49 PM (CST)
Your question suggests you are writing an essay for a
school project. If this is the case, please let us know what
YOU think about the issue first. Then we'll be happy to
guide your approach.

If you are a business professional, please remember
that the quality of response you'll receive is DIRECTLY
related to the quality of your question. Please frame your
question as a case study. Describe the issues you are
facing and be specific about what you want to learn.

Either way, it's hard to answer your question as it's
currently posted. Please provide more background
information, so we can help you.

 
Posted by: Val (Moderator)* Moderator Response
7/6/2004 4:06 PM (CST)
Hi all. Rashid emailed me further clarification/ideas about this question. See below.

Val

>> Distribution channel - a way of selling a company's product either directly or via distributors; possible distribution channels are wholesalers or small retailers or retail chains or direct mailers or your own stores. The easy excess to DISTRIBUTION CHANNEL indicate low barriers to entry in the PC business. <<
 
Posted by: jose04 Accepted Answer
7/23/2004 9:02 AM (CST)
Leonhart

Existence of distribution channels does not necessarily indicate high barriers to entry in a PCBiz market! This is because distrib. channels exist to help consumers of PC’s to buy their products. These channel members possess the functions of educating, guiding, training and providing quality pre and post sales services. These services can also be attempted by the producer of the PC, but often it is next to impossible to substitute the middlemen functions.

The big question is, how will you motivate the retailers/ distributers to stock you product and 'push' them? What other support would you suggest to make your products an exciting one for the distributors to recommend? What back up help (like advertising, promo materials etc) can you provide to them? All these questions and suggestions + your own experience/s and ideas will help your PC product idea to succeed.
All the best!!!
 
Posted by: Val (Moderator)* Moderator Response
7/27/2004 2:29 AM (CST)
Hello all. I am closing this question since it's more than 2 weeks old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

Thanks, so much, for participating!

Val (Moderator)
 


Get more answers ... ReTweet this!

Would you like to post a response?
Welcome to Know-How Exchange!
This is a collaborative community. We welcome everyone's participation.
All you need to do is login. Enter your account info in the box above (top right).
Not a member? Not a problem. Register here (it's FREE and EASY).




Know-How Exchange powered by MarketingProfs


Sponsored Links

Buy a Link Now

Just Released ... Download Today!
Just Released ... Download Today!
Look inside
Included with Premium Membership
User Name:
Password:
Remember Me
Forgot your password?

Top 25 KHE Experts
(Student Questions)
W.M.M.A. (28840)
Carl Crawford (22363)
wnelson (20398)
Puru Gupta (19298)
Peter (henna gaijin) (18747)
mgoodman (15744)
Jay Hamilton-Roth (13995)
thinkmor (10987)
ASVP/ChrisB (10031)
Gary Bloomer (9758)
mbarber (9061)
Pepper Blue (8859)
SRyan ;] (8165)
Sanjeev Kumar Vyas (7310)
stevea (6301)
jose04 (5994)
NoStressXpress (5284)
bennydunreallycare (5043)
michael (5010)
bobhogg (4824)
MANSING (4819)
Michele (4712)
SteveByrneBranding (4652)
sham (4488)
telemoxie (4315)
Recently Posted Marketing Jobs
Director of Marketing and Communications
Demand Generation Manager
Marketing/Advertising Faculty
Director of Marketing
Market Analyst
Sr. Field Marketing Manager - Business Intell.
Associate Vice President of Marketing and Corporat
Marketing Manager
[more jobs]

Join over 355,000 members ... SIGN UP!

My email address is and I'd like my password to be .

Already a member? Sign In!

My email address is , and my password is .


HACKER SAFE certified sites prevent over 99.9% of hacker crime.